We've had our hardware store on the market for about seven months now. Two interested buyers, both fell through at the financing stage. I'm starting to wonder if small retail is just untouchable right now. Curious if anyone else is in the same boat and what's actually working.
Selling a Business
Anyone else trying to sell a small shop right now?
Been trying to sell a small bakery since last fall. Same story. People love the idea until they see the books and the landlord's lease terms.
What sector are you in? That changes things a lot.
Independent hardware and farm supply. Very steady revenue, but it's a lot of inventory to hand over. I think that scares people off.
Honestly the inventory is probably the least of it. Most buyers I've talked to can't gey an SBA loan approved for retail right now. My broker said the same. We ended up pulling our listing and just holding another year.
Did holding actually help, or just delay the problem?
Hard to say yet. We're not losing money, so there's no panic, but I'm not sure the buyer pool gets any bigger next year. At some point you have to decide whether you're running it or selling it.
That's exactly where I am. I keep thinking the next quarter will Bring better offers. It hasn't yet.
Have you looked at a business broker who actually specializes in retail? Most of the generalists just list it and wait.
Not a seller, but I looked at buying a small shop last year and walked away because the owner wouldn't provide three years of clean financials. If your records are solid, say so upfront in the listing. It filters out the tire-kickers.